05 Aug, 2022 07:50 PM

Govt not adverse to 8th Central Pay Commission constitution

The Central Government refuted the claim that there would not be an 8th Central Pay Commission to review the salaries, benefits, and pensions of Central Government employees and retirees. There is "No" such plan against the 8th Pay Commission being considered, according to a written response from Union Minister of State for Finance Pankaj Chaudhary at the Rajya Sabha (Read the copy below). The 7th Pay Commission. had suggested that it may not be required to form a new pay commission to examine the wages, allowances, and pensions paid to Central Government employees and pensioners. The 7th Pay Commission "suggested that the matrix may be revisited annually without waiting for the long term of ten years." However, this was not accepted by the government. This means that the centre would constitute the pay commission at a time when required.

In response to another question about whether the government will raise the Dearness Allowance and Dearness Relief rates because of high WPI inflation, Chaudhary said that it wasn't necessary because DA/DR is based on AICPI-IW data from the Labour Bureau in Shimla. Also, read: 4% DA hike confirmed with June CPI IW. 38% Dearness Allowance from July 2022

Pensioners and people who work for the Central Government are waiting for the DA/DR rates to go up again. The Government may soon decide what to do about this.

“Review of salary/allowances/pension of Central Government employees/pensioners”

1807: Shri Naranbhai J. Rathwa

Will the Minister of Finance be pleased to state:

(a) whether it is a fact that the Government is considering not to constitute 8th Central Pay Commission (CPC) to revise salaries, allowances and pension of Central Government employees and pensioners;

(b) if so, the details thereof and the reasons therefor;

(c) whether it is also a fact that 7 CPC had recommended that Government should review the salary, allowances and pension of employees and pensioners every year rather than forming a new Pay Commission after a long period of ten years; and

(d) if so, the reasons for not implementing the recommendations of 7th CPC so far?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) No, Sir.

(b) Does not arise.

(c) The Chairman of 7th CPC in his forwarding of the Report in Para 1.22 had recommended that the matrix may be reviewed periodically without waiting for the long period of ten years. It can be reviewed and revised on the basis of the Aykroyd formula which takes into consideration the changes prices of the commodities that constitute a common man’s basket, which the Labour Bureau at Shimla reviews periodically. It is suggested that this should be made the basis for revision of that matrix periodically without waiting for another Pay Commission.

(d) This issue has not been considered by the Union Cabinet while according the approval for the revision of pay and allowances based on 7th CPC.